Calculate net revenue or revenue

Reference no: EM13125419

The benefits and costs of an investment project (the purchase of a piece of machinery) are those given in the following table. In excel, calculate net revenue, or the revenue from the investment minus the costs; the present value coefficient for every year; and the present value of the net revenue. Add together column F to get the net present value of the project. Should the firm purchase the machine?

End of Year Investment Revenue NE PV Coefficient 1/(1+0.5)n PVNR

0 1000 ----

1 200 600

2 300 800

3 300 800

4 400 800

4 --- 200 (salvage value)

Reference no: EM13125419

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